On the money: The well-being benefits of talking about your finances
Our financial health is just as important as our physical and mental well-being, yet we still find it difficult to talk about money. Following this year’s Talk Money Week, our latest Business Matters discusses why opening up about finances can help entrepreneurs tackle the issues that matter to you, your employees and your loved ones.
When you think about money, chances are that you have some sort of emotional reaction to it. After all, it’s weaved throughout our daily lives – from shaping the lifestyle we lead, to the financial impact of big life events, such as births, weddings and deaths. And for business owners, there can be an extra dimension to the emotion attached to your finances, as the success of your company often equates to the financial health of your household and those of your employees.
It stands to reason, then, that taking a positive approach to your money can make a real difference to your overall sense of well-being. Yet, something as simple as talking about it remains a taboo.
So, could this lack of communication be stopping us from unlocking our financial potential? The Money and Pensions Service (MaPS) certainly think so. To mark their annual Talk Money Week, we explore the key issues for business owners and entrepreneurs in particular.
Heart and head
What, indeed, is financial well-being? According to MaPS, it’s all about feeling secure, confident and empowered, as well as having control of your finances. We’ve all been guilty of putting off conversations about money – but doing so could be contributing to a wider problem. MaPS’ research indicates that 19 million people in the UK feel worried when thinking about their financial situation.1
But it’s not all bad news. According to MaPS, people who talk about money make better and less risky financial decisions, have stronger personal relationships, help their children form good lifetime money habits and feel less stressed or anxious and more in control.2
But what does this mean for directors or freelancers, who perhaps feel alone at the top? And how can you support employees who might be feeling the pinch during this turbulent winter?